Social Leverage Letter | Issue #55

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UPFRONT

beehiiv Raises $1.6M to Expand Headcount, Accelerate Product Development

Social Leverage portfolio company beehiiv (Fund IV) raised $1.6M to expand headcount and accelerate product development. This raise extends the seed round from October of 2021, bringing in the total raised to date at around $4.2M. 

Post-launch in November 2021, beehiiv has grown 30% plus MoM revenue and should exceed $1M ARR before the end of this year. Proceeds will be used to expand sales and marketing efforts in the enterprise market, and pilot an ad network with select publishers and brand partners. 

beehiiv is led by Morning Brew alum CEO Tyler Denk, and based in New York City. Their mission is to be the best place for creators and publishers to monetize their work, and offers a robust, easy to use, newsletter publishing experience. Learn more here.

Ethereum Shift Could Bring Regulation

When is a cryptocurrency a security, and when isn’t it? Last week, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler says proof-of-stake (PoS) crypto could be considered securities – this now includes Ethereum, which shifted to PoS this past Thursday. 

Gensler told Congress on Thursday that assets which allow the holder to earn passive income through staking could pass the Howey test (Not our Howie) – a test used by courts to classify an asset as a security by determining whether or not an investor can expect to earn income from holding the asset. 

Gensler is previously on record claiming Bitcoin is a commodity because it functions under proof-of-work (PoW) protocol.

His latest comments on Ethereum could have implications for other PoS networks like Cardono and Solana, subjecting them to U.S. securities laws.

Chinese Investments in U.S. VC set to top $880M

Chinese investments to Silicon Valley Venture funds are on pace to reach $880M this year, according to the Wall Street Journal.

This year is expected to be the second highest dollar amount invested in the last 12 years, and the actual amount of Chinese investment in U.S. venture capital may be higher than reported as many VCs don’t publicly disclose amounts invested by their limited partners.

China has invested some $4B in U.S. venture firms, and another $3.5 billion in U.S. private equity firms since 2010.

The U.S. government continues to be concerned Chinese investors may gain access to strategically important sectors like semiconductors and artificial intelligence.

Work from where?

Most didn’t plan on becoming digital nomads, but Chiang Mai has become the “the digital nomad capital of the world.” Everyone there is working online. Some have their company’s blessing, a lot don’t. 

How to Use 'Monk Mode' to Change Your Life in Just a Week

Most of us think of January as the month for new beginnings. Turns out September may be the best month to start new habits or reinvent yourself. Following the four rules of Monk Mode are doable for anyone, even if you’re still stuck in a post-pandemic energy and drive funk.

WHAT ELSE WE'RE READING

Here's a few other stories that caught our eye over the past week.

Leadership isn’t a position – it’s a series of actions…

Marshall Goldsmith is an expert on leadership and coaching for behavioral change and has been recognized as one of the Top Ten Business Thinkers in the World. He’s been at it for nearly 40 years. He’s also authored quite a few books on leadership, to include: What Got You Here Won’t Get You There, and his latest: The Earned Life.

DEAL SPOTLIGHT

Some of you may remember Grandma slumped on the couch mindlessly flipping between HSN and QVC – this startup is bringing in-video shopping to mobile for foodies. If you're interested in the intersection of e-commerce, user-generated content, and the live-stream economy, check out Howard’s interview with Sam Jones, the Co-founder and CEO of OOOOO on Panic with Friends as well.

flavrs App Raises $7M Seed Round Led by a16z - Launches beta

flavrs recently launched in beta and provides foodies with a shoppable-video platform merging food content and commerce. The app allows foodies to watch, shop, and eat by connecting food videos to shopping through an instacart integration.

The seed round was led by Andreessen Horowitz, with participation from Wellington Access Ventures, Cercano Management, Progression Fund and firstminute Capital. The funding enables a beta launch, along with talent to create videos that allow users to shop for ingredients and replicate the recipes at home. Content partners include renowned chefs and creators such as Eric Ripert, Andrew "Babish" Rea, Jamie Milne from Everything Delish, Davon Moseley from Royale Eats, and more.

Co-founders CEO Alejandro Oropeza and CTO Francois Chu paired up to elevate chefs and creators while improving the shopping experience for foodies worldwide. Oropeza is a trained chef and the former Global Head of Creator Marketing at YouTube. Chu is a former Engineer at Google Shopping and a Product Manager at Plaid.

flavrs is available on the App Store and is adding users to its beta waitlist. Creators can sign-up at flavrs.com/creators to join established and aspiring talent, and get access to new opportunities.

WEB3 ROUNDUP

News on blockchain/web3:

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Affiliate Disclosure: Social Leverage Group, LLC ("SLG"), Social Leverage Capital Fund I, LP ("SLC"), Social Leverage Capital Fund II, LP ("SLCII"), Social Leverage Capital Fund III, LP ("SLCIII") and Social Leverage Capital Fund IV, LP ("SLCIV") are all distinct entities from Social Leverage, LLC ("SL"). Social Leverage is not a registered investment advisor. SLC, SLCII, SLCIII, SLCIV, SLG and SL have used the logo and branding of Social Leverage with the permission of Social Leverage Group, LLC.